If you’re like most people who are buying a home for sale in Lake City or a nearby community, you know that you’ll need to come up with a down payment.
But just how much cash do you need to buy a home? Is it really 20 percent of the home’s listing price?
What’s a Standard Down Payment When You Buy a Home?
Historically, you had to come up with 20 percent of a home’s listing price as a down payment. And while that would really benefit you today (that’s 20 percent less that you have to borrow from the bank, and you won’t have to buy private mortgage insurance, or PMI), it’s not always necessary to fork over that much cash when you want to buy.
Related: What is PMI?
That’s great news, because if you’re buying a $250,000 home, that would mean you have to stash away $50,000 – a tough feat for most Americans. And according to the National Association of REALTORS(R), about 81 percent of first-time homebuyers buy their first houses with a down payment of less than 20 percent.
So how are they pulling it off?
Many lenders let you put down less cash, and several loan products themselves require less money as a down payment. In fact, FHA loans can require as little as 3.5 percent down. And if you’re an active, reserve or honorably discharged member of the U.S. Armed Forces, you might qualify for a VA loan, which doesn’t require any down payment at all (and has no private mortgage insurance requirement). The same is true for USDA loans, which are backed by the U.S. Department of Agriculture, but those are only available for some home purchases (the house or property has to meet certain criteria).
Related: What is a VA loan?
Find Homes for Sale in Lake City Now
You can also look for down payment assistance. There are thousands of programs all across the country that pay out an average of $17,000 to each homeowner they help. You can see a huge list of programs at the link below.
Are You Buying a Home for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
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